Total Premium Collection of Life Insurers Drops 3 Percent in FY12
By PTI
Total premium collection was at Rs.2,91,605 crore in FY2010-11.
The new business premium collected by the industry for FY 2011-12 declined by 9.5 percent at Rs.1,13,678 crore from to Rs.1,25,618 crore last year.
Linked new business saw a significant drop of 67 percent to Rs.17,455 crore against Rs.52,739 crore last year.
However, Non-Linked new business premium showed a growth of more than 32 percent to Rs.96,224 crore as on March 31, 2012, compared to Rs.72,878 crore in 2010-11.
The total assets under management (AUM) of life insurers increased by 9 percent to Rs.16,18,544 crore as on March 31, 2012, compared to Rs.14,82,549 crore in the previous year, despite the apparent slow-down in the industry.
"This drop in total premium can be attributed to change in regulatory road map, declining number of products and disappearance of pension business in the individual segment," Life Insurance Council Secretary General S B Mathur said.
Life Insurance Council is the industry body of life insurance companies.
If the individual pension business is considered, which forms a major segment of the new premium for Life Insurance companies, and on which policy holders have traditionally placed trust during the accumulation stage, has fallen drastically in FY'12 to a meager 1.80 percent of total new business premium, he said.
New Business Premium garnered from individual pension policies during FY12 shrunk considerably to paltry Rs.1,139 crore compared to Rs.19,257 crore in the previous fiscal and Rs.26,389 crore in 2009-10.
Don't Miss
